No more FASTag from May 1? India to launch GPS-based toll collection

Big changes are coming to your road trips starting May 1, 2025! The National Highways Authority of India (NHAI) is getting ready to roll out a GPS-based toll collection system, gradually replacing the FASTag system we’ve all been using.

What’s Changing?

The new system will use satellite technology to track how far your vehicle travels on national highways, and charge you toll accordingly. This means no more stopping at toll plazas — your toll will be calculated and deducted directly from your bank account based on the exact distance you’ve travelled.

Originally set for an April 1 launch, the system was delayed but is now expected to go live from May 1 on select highways.

How Does This Work?

The system uses Global Navigation Satellite System (GNSS) technology — a network of satellites that provides real-time positioning and navigation data. These virtual toll booths will track your vehicle’s movement through satellites, calculate your travelled distance, and automatically deduct the appropriate toll amount from your account.

Key features:

No physical toll plazas

No halts or queues

Time and fuel savings

Direct payment from your bank account

Support for prepaid and postpaid billing

What The Government Says

Union Road Transport and Highways Minister Nitin Gadkari recently announced in Nagpur that a new toll policy will be introduced by the end of April. He confirmed, “We’re introducing a satellite-based toll system so you won’t have to stop at toll plazas.”

The minister has also stressed that this move will modernise road travel, reduce congestion, improve transparency, and simplify governance for citizens.

FASTag vs GNSS: What’s Different?

FASTag GNSS-Based Tolling

Uses RFID technology Uses satellite (GNSS) tracking

Requires a tag on the windshield No physical tag needed

Vehicles need to slow down at toll plazas No need to stop — toll collected virtually

Charges a flat fee per toll plaza Charges based on distance travelled

Can cause queues during peak hours Eliminates congestion completely

Why It Matters

This new system is expected to make road travel:

Faster

More efficient

Cost-effective

Eco-friendly (saving both fuel and time)

It’s part of India’s broader mission to upgrade infrastructure and embrace digital solutions that make everyday life smoother for citizens.